Saving what you can as regularly as possible helps in times of need, giving you greater financial security.
Research from the Money and Pensions Service (MaPS) has found that 46% of people do not save regularly. As part of UK Savings Week, Michael Royce – Savings Lead at MaPS, offers five tips to make your money go further and boost your savings using resources on our MoneyHelper service.
1. Use free tools and resources
There are lots of free resources and tools that can help you save.
MoneyHelper’s Budget Planner can help you see where you’re spending and where you could cut back to put more in savings. And its Savings Calculator shows how long it’ll take to save for a big purchase.
The Savings Calculator also offers tips and support to help you stay on track.
2. Use a savings account with a good rate
Research from the Building Societies Association (BSA) found that 39% of those aged 18 – 34 hold their savings in a current account rather than a savings account.
If your savings are in a current account, you’re better off moving them to a high-rate savings account that gains interest. Make sure to shop around for the best rates, as different banks and building societies will offer different amounts of interest.
Ensure it’s the right account for you. Consider whether the account has any fees or charges for transfers or withdrawals, and how easily you can access your money. Use the comparison tool on the MoneyHelper website to help find the right account for you.
3. Use ISAs for tax-free growth
An Individual Savings Account (ISA) is a great way to build your savings in a tax-efficient way.
Each tax year the government sets a maximum amount that you can put into an ISA – this is currently £20,000 and, with an ISA, you pay no income tax on the interest you earn.
There are lots of different types, including those with fixed term rates, Stocks and Shares ISAs and Lifetime ISAs.
4. Benefit from Help to Save
Working people receiving Universal Credit can benefit from the government’s Help to Save scheme, but in 2023/24, only 2% of those receiving Universal Credit opened one.
With this account, the government will add a bonus 50% to your savings after two years, and you can have the account for up to four years.
If you had £1,200 after two years, this would increase to £1,800 with Help to Save.
5. Check for forgotten savings
Millions of pounds sit unclaimed in old accounts, Premium Bonds, and Child Trust Funds. The government’s online tracing services help reunite people with lost money from previous addresses or forgotten accounts.
If you are or know someone who is between the ages of 16 and 18, encourage them to find a lost Child Trust Fund account, there’s information on the MoneyHelper website.
This UK Savings Week, why not start building your financial confidence using the free guidance on the MoneyHelper website – even small changes can make a big difference to your savings.
